Investing in the Mission
The Single-Family Mission Index is a powerful tool created for mission-focused investors to help drive more intentional housing outcomes, and positively impact the communities in which we live.
Make Informed Investments with the Mission Index
The Mission Index provides insights into mission-oriented lending activities underlying our Single-Family mortgage-backed securities (MBS)—helping meet specific portfolio construction needs and informing investment strategy. The flexible framework allows for the underlying criteria to evolve over time and can adapt to meet market dynamics.
The Mission Index minimizes disruption to Uniform Mortgage-Backed Securities (UMBS) in the “to be announced” (TBA) market and delivers transparency to investors while protecting borrower privacy.
Explore the Drivers of the Mission Index
Learn how the 3 mission categories, Mission Criteria Share (MCS), and Mission Density Score (MDS) work together to support investing and lending that aligns with our mission.
Methodology
Three dimensions reflect how we organize our broader commitments to serve those who need it most.
Scoring Framework
Each dimension is made up of specific criteria used to determine the mission-oriented scoring makeup of each pool of loans.
Understanding the Single-Family Mission Index
To show how the Mission Index functions, let’s first generate the Mission Criteria Share (MCS) for a hypothetical residential MBS pool composed of 10 loans.
To begin, we’ll evaluate the loans against our criteria.
Scoring Loan Pools for Mission Criteria
Each loan in a pool is scored against the mission criteria and receives a loan-level score that reflects the number of criteria satisfied.
In this example, 8 of the 10 loans meet at least one criteria.
Generating the Mission Criteria Share
This pool would have a Mission Criteria Share (MCS) of 80%, which represents the share of loans that meet any 1 of the 10 mission criteria.
Next, we’ll calculate a Mission Density Score.
Assessing Mission Density
The Mission Density Score (MDS) is generated by evaluating each loan in a pool against three dimensions: income, borrower, and property. A loan receives a score of 1 for each dimension it satisfies, for a maximum loan-level score of 3.
The average of these scores within a given pool is the MDS.*
Calculating the Mission Density Score
This pool would have a score of 2.1, representing a higher density of mission-oriented loans.
The MDS ranges from 0 to 2.5. Higher scores imply greater potential for mission impact.
Elevating Mission-Oriented Lending
By utilizing the Mission Index, investors and lenders can promote greater access to credit and affordable housing opportunities.
Swipe to see how the Mission Index works.
Click to see how the Mission Index works.
Mission Index Criteria Attribution (MICA) Resources
The new MICA disclosure supplement and Excel-based tool empower investors to quantify the estimated impact of their portfolio investments on specific populations of Mission borrowers.
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Single-Family Social Bonds
Insights from the Mission Index serve as the foundation for Fannie Mae’s Single-Family Social Bonds, which allow investors to add MBS that align with mission criteria to their portfolio.
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Investor Resources
Mission Index Methodology
Get an overview of the methodology behind the Mission Index.
Perspectives Blog
Discover how the Mission Index drives capital to underserved communities while supporting affordable housing initiatives across the U.S.
Webinar: Bloomberg & Fannie Mae
This webinar discusses the Mission Index disclosure methodology, monitoring Bloomberg Index composition and performance, keeping up with issuance, and creating CPR workbooks to track prepayment trends across Mission linked collateral.
Fixed on ESG Podcast
This podcast explores the Mission Index and Social Bonds, looking at pool composition, prepayment performance, and more.
Social Bond Framework
Learn how the enhanced Mission Index lays the groundwork for our Single-Family Social Bond Framework.
FAQs
Find answers to frequently asked questions.
Disclosure and Privacy: A Delicate Balance
Read about our efforts to balance mortgage securities’ disclosure requirements and data privacy.
The Mission Index is Fannie Mae’s enhanced disclosure that provides insights into mission-oriented lending activities underlying our single-family mortgage-backed securities (MBS). It scores each Single-Family MBS the Enterprises issue on ten criteria, focusing on income, borrower, and property attributes that align to many of our statutory affordable housing responsibilities or other important mission goals. The Mission Index serves as the foundation for Enterprise-aligned Single-Family Social Bonds. These bonds will offer investors the ability to invest in single-family MBS featuring high concentrations of loans consistent with our mission and Duty to Serve goals. In turn, investor demand for these MBS may result in lenders focusing more on lending to those same populations.
The Mission Criteria Share (MCS) is the percentage of the loan pool that meets at least one of the ten criteria: First-Time Homebuyer, Borrowers in Underserved Markets, Special Purpose Credit Program Borrower, Manufactured Housing, Designated Disaster Area, Low-Income Census Tract, Minority Tract, High-Needs Rural Area, Affordable Rental, and Low-Income Borrower. Pools are made up of 10 or more loans, and each loan in a pool is scored against the ten mission criteria across three dimensions.
The Mission Density Score (MDS) is generated by evaluating each loan in a pool against three dimensions: income, borrower, and property. A loan receives a score of 1 for each dimension it satisfies, for a maximum loan-level score of 3. The MDS ranges from 0 to 2.5. Higher scores imply greater potential for mission impact.
Legacy Mission Index V1 (Social Index) Resources
The resources below help showcase the evolution of the Mission Index from version 1 to where it stands today.
Mission Index V1 (Social Index) Methodology
Review the initial Mission Index V1 (Social Index) methodology.
Historical Information*
View Mission Index V1 (Social Index) scores for active and inactive MBS pools issued from January 2010 through October 2022.
Mission Index V1 (Social Index) Prepayment Chartbook
Review historical loan pool performance.
*You can sign up for PoolTalk® credentials via the Login button. Report file is located in Data Files and Reports.
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Contact us to learn more about the Mission Index and how it may facilitate investment opportunities that align with your portfolio goals.
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